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Starting Your Own Business

The Legal Details
I have an idea…
Cofounders
Image courtesy of Claire Topalian, UpGlobal
Going into business together is like getting
married.
!

Sometimes things don’t work out.
!

Make sure to protect yourself.
Consider:
!

Nondisclosure Agreement
!

Founders Agreement
!

Vesting Schedules
Image courtesy of tvscreener.com
What’s in a name?
Image courtesy of Citizen Tekk
The money question
Image courtesy of GQ
Getting it started…
Choosing a Business Entity
Your Choices:
!

Sole Proprietor
!

Partnership
!

Corporation
!

C-Corporation*
S-Corporation
!

Limited Liability Company
!

Social Ventures
!

Flexible Purpose Corporation
Benefit Corporation
Choosing a State
Image courtesy of San Diego Free Press
Equity
Starting a Business: The Legal Details
Investors
Types of Investors:
!

Angel Investors
!

Seed Investors
!

Early Stage
!

Late Stage
!

Social Impact
Licenses
Image courtesy of Wikimedia
Image courtesy of Wikimedia
Protecting Your IP
Trademarks
Image courtesy of
Kluger, Kaplan, Silverman, Katzen & Levine L.P.
Do you need a patent?
To employ or not to employ?
Employees v. Independent Contractors
It’s about control
Ask Yourself…
!

Will I control…
!

the way the work is performed?
!

or
where the work is performed?
!

Am I…
!

the worker’s primary source of
income?
!

providing benefits?
!
Considerations
Taxes
!

Federal
!

Social Security = 6.2%
Medicare = 1.45%
FUTA = 6.2% on first $7,000
!

State
!

Unemployment Insurance = 3.4% on first $7,000
!

Employer Training Tax = 0.1% on first $7,000
!

Local
!

San Francisco = 1.5%
?
Lawyer

Stephanie Margossian
@samargossian
margossian@gamallp.com
gamallp.com
Starting Your Own Business

The Legal Details

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Starting a Business: The Legal Details